EQUITY TECHS: E-MINI S&P: (H5) Double Top Reversal Threat
- RES 4: 6178.75 High Dec 6 ‘24 and key resistance
- RES 3: 6166.50 High Jan 19
- RES 2: 6019.64 50-day EMA
- RES 1: 5884.00/5924.0 High Mar 4 / Low Feb 25
- PRICE: 5809.25 @ 14:44 GMT Mar 5
- SUP 1: 5744.00 Low Mar 4
- SUP 2: 5730.00 Low Sep 18 ‘24
- SUP 3: 5698.25 50.0% retracement of the Aug 5 - Dec 6 ‘24 bull leg
- SUP 4: 5658.00 Low Sep 12 ‘24
A sharp sell-off in the S&P E-Minis contract this week, reinforces a short-term bear threat. The contract traded to a fresh short-term cycle low Tuesday - price has breached support at 5809.00, the Jan 13 low. This highlights a stronger reversal and a double top pattern on the daily scale. A resumption of weakness would open 5698.25, a Fibonacci retracement. Initial firm resistance to watch is 6019.64, the 50-day EMA.
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US DATA: Highest Mfg PMI Output Price Inflation Since March 2024
- The S&P Global US manufacturing PMI was surprisingly revised up to 51.2 in the final January print (prelim 50.1) from 49.4 in December, leaving it at its highest since June.
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- “Meanwhile, input costs continued to increase sharply, leading the pace of output price inflation to accelerate for the third month running to reach the highest since March 2024."
- See the full S&P Global press release here.
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- They believe that “this leaves the market vulnerable to under-delivery, in our view, especially should the German election fail to free up space to ease fiscal policy.”
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EQUITY TECHS: E-MINI S&P: (H5) Bearish Threat
- RES 4: 6162.28 High Jan 24 and a key resistance
- RES 3: 6057.75 Low Jan 31 and a gap high on the daily chart
- RES 2: 6021.01 50-day EMA
- RES 1: 5988.75 Intraday high
- PRICE: 5984.50 @ 14:39 GMT Feb 3
- SUP 1: 5935.50 Intraday low
- SUP 2: 5892.37 76.4% retracement of the Aug 5 - Dec 6 bull leg
- SUP 3: 5842.50 Low Jan 14
- SUP 4: 5809.00 Low Jan 13 and a key resistance
The S&P E-Minis contract has started the week on a bearish note. The gap lower today and a breach of support at 5948.00, the Jan 27 low, strengthens a bearish threat and cancels - for now - a recent bullish theme. An extension down would open 5892.37, a Fibonacci retracement point. Initial resistance is at 6057.75, the Jan 31 low and a gap high on the daily chart. Clearance of this level would reinstate a bullish theme.
